Wednesday, April 18, 2007

Vonage may file Bankruptcy !!!

Some bad news for Vonage Customers .... Vonage has just said that if their legal battles continues then they may end up filing for bankruptcy.

Here is what NY times has to say about the news ...

The filing yesterday with the Securities and Exchange Commission also detailed other risks from continuing litigation. They include the possible interruption of service, an inability to repay its debt and a decline in its stock that could lead to the delisting from the New York Stock Exchange.

Vonage was ordered to pay $58 million and royalties on future sales to Verizon after it lost the patent infringement case in March.

The court also barred Vonage from adding new customers while it appealed the decision.

An appeals court allowed it to continue signing up new customers ahead of a hearing to consider a permanent stay on the bar on April 24 .

Vonage’s chief executive, Michael Snyder, stepped down last week as the company said it planned to cut jobs and expenses by $30 million in 2007.

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